Here are the key things you need to know before you leave work today.
MORTGAGE RATE CHANGES
No changes to report today.
DEPOSIT RATE CHANGES
ANZ has reduced the premium (bonus) interest rate on its Serious Saver account by -15 bps to 2.10%. The base rate remains unchanged at 0.10% and thus the total interest rate is 2.20%.
Westpac has reduced its $10,000 and above term deposit rates for 3 mnths, 6mnths and 1 yr to 2.80%, 3.30% and 3.30% respectively. The changes have also been mirrored across to the Term PIE rates. Westpac Supergold rates have also been reduced for 6 mnths and 1 yr to 3.30% and 3.20% respectively.
Other rate changes include a reduction in the savings account rates at Police Credit Union and BNZ's Business First OnCall and Farm First Call accounts.
TERMS OF TRADE HIGHEST SINCE 1973
Terms of trade is a measure of the purchasing power of New Zealand’s exports abroad. It rose +5.1% in the March quarter, compared to the December quarter, and +7.8% compared to March 2016. This means that New Zealand can buy +5.1% more imports for the same amount of exports. The rise in export price in March 2017 quarter was +8% and rise in import prices was at +2.7%. In terms of services, the terms of trade was stable with an increase of +0.1% for the March 2017 quarter, compared to the December quarter, and +2.6% compared to March 2016.
AUTOMATIC EXCHANGE OF INFORMATION
From 1 July 2017, financial institutions in New Zealand will be required to identify accounts held or controlled by foreign tax residents and collect relevant information. This information will be passed on to Inland Revenue by 30 June every year, who will pass this information on to the relevant foreign tax authorities to ensure everyone is paying the right amount of tax. Taxpayers’ privacy and data security are important concerns and information will be shared safely and securely. The information campaign targets foreign tax residents with accounts here but also New Zealanders with accounts overseas.
STATE SECTOR PRODUCTIVITY
Steven Joyce has release the terms of reference for the Productivity Commisssion's inquiry into State sector productivity. The inquiry will be particulary focused on core health, education, justice and social support services as the Government tries to help more New Zealander's for every dollar of tax payers money.
GOFF'S BED TAX PASSED
Auckland councillors have voted in favour of the targeted tax for accomodation providers. This tax was strongly opposed by the hospitality industry but Phil Goff hopes the tax will cover half the cost of hosting major events in Auckland and tourism promotion costs.
WESTPAC NZ BOND ISSUE
Westpac New Zealand is set to issue $500 mln worth of senior unsecured bonds with an interest rate of 3.775%, priced at a margin over swap of 1.10%, maturing 7 June 2022.
AUSTRALIAN HOUSE PRICES
CoreLogic data shows that for the month ending 31 May 2017 house prices aggregated across the five capital cities were down 1%. Sydney was down 1.3% and Melbourne 1.7%, but both cities were still up over 11% for the year.
AUSTRALIAN RETAIL SALES
Retail sales in Australia rose by 1% in April 2017, seasonally adjusted, following a fall of 0.2% in March 2017. The rise was primarily driven by a rise in food retailing, retaurant, cafe and takeaway spending and department store retailing.
CHINA MANUFACTURING CONTRACTS
The Caixin PMI released this afternoon was recorded at 49.6, down from 50.3 in April and lower than the forecast of 50.1. It showed that for the first time in 11 months, operating conditions for manufacturers deteriorated, company's shed more jobs due to weaker demand and falling factory prices.
WHOLESALE RATES LOWER
Local swaps curve was lower and flatter with the short end rates falling by -1 bps and the long end by -2 bps. The 90 day bank bill rate is -1 bps lower at 1.96%.
NZ DOLLAR LOWER
After testing resistance at the 71 USc level overnight, the NZD has fallen to trade around 70.7 USc. On the crosses we are at 95.6 AUc, and at 62.8 euro cents. The TWI-5 is now at 75.0.
You can now see an animation of this chart. Click on it, or click here.
Daily exchange rates
Select chart tabs
18 Comments
Citibank's chief economist William Buiter on the Australian debt problem and housing bubble (and by extension New Zealand).
https://www.macrobusiness.com.au/2017/06/full-willem-buiter-australia-b…
... thanks for the great link ... really enjoyed that ...
For those who're time deprived , the first 11 minutes are giving to talking about a hard landing in the Chinese economy : 1100-1230 minutes to discussing the housing boom in Australia , NZ & Canada : 1230-1500 minutes to opining over a future recession in the USA , and 1500-1634 a general overview of the world economy ..
Special Report: 'Ghost collateral' haunts loans across China's banking system
In some cases, collateral that has been pledged simply doesn't exist. In others, it disappears as borrowers in financial distress sell the assets. There are also instances in which the same collateral has been pledged to multiple lenders. One lawyer said he discovered that the same pile of steel was used to secure loans from 10 different lenders. Read more and more
... as if we needed any more reasons to avoid visiting Orc Land , Mayor Goofy and his cobbers at council have voted for a hotel/motel bed tax ...
The room costs are high enough as it is , Phil boy !
... no chance of you lot trying to better manage the $ Billions that flow into the council's coffers annually from the long suffering and perennially deceived rate-payers , then ?
Sigh !
It's a stupid tax.
A stupid, stupid form of taxation.
It just makes airbnb relatively more attractive.
Bad news for both hospo and renters.
"Phil Goff hopes the tax will cover half the cost of hosting major events in Auckland and tourism promotion costs."
Shouldn't that be covered by residents/rates, though?
It's a bit rich to charge tourists directly for the right to stimulate economic growth within a region, isn't it?
(assuming elasticity at this point in time).
Meh, departure tax doesn't stop people traveling to NZ. An extra dollar or even two per night likewise won't. If it did, hotels would be empty when major events are on and people would find somewhere else to stay - you know, that time where they double or triple their rates.
Wages in Japan: Decoding Key Indicators as Pay Inches Higher
The scheduled pay per full-time worker is a key determinant of spending by families and households with at least one member in steady and secure employment. It’s also a significant fixed cost for companies and as it rises so too does pressure on businesses to charge their customers more.
This gauge has been edging higher since mid 2014 but hasn’t made a significant mark on consumption or inflation yet. While a shortage of workers has encouraged some employers to hire more full-timers over the past two years, they now comprise 69 percent of the workforce, compared with 84 percent about two decades ago.
For the most part, these workers are more interested in holding onto their jobs and the benefits that go with them than pushing for a pay rise or job hopping. The annual "shunto" wage negotiations by the nation’s labor unions are testament to this tendency. Read more
"Stimulus" be damned.
Canadian Incomes Declined For The First Time In Four Years
https://betterdwelling.com/canadian-incomes-declined-for-the-first-time…
Stamp Duty doubles for foreign investors. The great State of New South Wales.. 8%!
The relief for first homebuyers comes at the expense of domestic and foreign investors.
Foreign investors will have their stamp duty surcharge doubled from four to eight per cent and land tax hiked from 0.75 per cent to two per cent.
"This is a huge win for people aspiring to own their first home in NSW," Ms Berejiklian told reporters in Sydney on Thursday.
http://www.news.com.au/national/breaking-news/nsw-housing-tax-rises-for…
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.